I've just realized that many newcomers to the crypto market often overlook a very important aspect — how to manage their trading orders. Today, I want to share three basic concepts that everyone must understand to trade more professionally.

First is Entry — the point of entry. Simply put, this is the price at which you start buying or selling an asset. If the price closes exactly at your Entry, then you break even. Pretty straightforward, right?

But what's crucial is knowing how to protect yourself when the market moves against your expectations. That’s where Stop Loss comes in — as I often call it, cutting losses. Stop Loss allows you to automatically close your position if the price drops to a specified level, helping you minimize losses. For a Buy order, the Stop Loss should be set below the Entry. For a Sell order, it should be above the Entry. A small tip is not to set the Stop Loss too close to the Entry, because markets often fluctuate sharply, and you might get wiped out unnecessarily.

Now, let’s talk about what everyone wants — taking profits. What is Take Profit? It’s an order that automatically locks in your profit when the price reaches your target. Similar to Stop Loss but in the direction of profit. For a Buy order, Take Profit should be above the Entry. For a Sell order, it should be below the Entry. Essentially, Take Profit is your way of saying, “Alright, enough profit, I’m out.”

I see many people initially don’t understand why they need to pre-set these orders. But once you set Stop Loss and Take Profit, you save time from constantly monitoring your trades. Moreover, psychological pressure is greatly reduced when you know that your losses or gains are controlled within a reasonable range — usually 0.5% to 1% of your account. A good strategy I often use is to set the Stop Loss smaller than the Take Profit relative to the Entry, so that with multiple trades, the profits from the Take Profit orders can offset the losses from the Stop Loss orders.

But it’s not always smooth sailing. When the market is highly volatile, you might encounter a Stop Loss hunt — where the price hits your Stop Loss, closes the position, and then reverses back. That’s why it’s advisable not to set the Stop Loss too close to the Entry. Additionally, sometimes your position is a good one that’s hard to re-enter, but the Take Profit has been triggered and the price continues to rise. Despite these risks, setting Stop Loss and Take Profit is extremely necessary, especially in Futures trading. Ignoring Stop Loss can lead to account liquidation in the blink of an eye.

When you decide to trade more professionally, Stop Loss and Take Profit are not just additional orders — they are the foundation of risk management. Eat small, eat long-term, my friend. That’s the way to survive long in this market.